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Breakthrough Ideas for Greater Real Estate Success!

How to Make Any Size Income You Desire in Real Estate

So much is changing so fast in real estate, it's hard to know where to turn for reliable advice on growing your business - especially in today's tricky market.

That's why I want to share with you a proven, time-tested way to create any size income you want to make in real estate…a way to make your success a "mathematical certainty."

It's actually a modified excerpt from my recent book, "The Ultimate Real Estate Success Secret" and just by running this little 3-Step exercise will open up new opportunities and ideas for growing your business to exciting new heights.

So let's get started…

Did you ever take physics in high school or college?

I cringe when I hear the word. But if you did take physics, you might have learned about an amazing concept called "Critical Mass."

What is "Critical Mass" and what on earth does it have to do with real estate success?

"Critical Mass" occurs when an object or process in motion reaches such a momentum that it continues at that momentum…even increases that activity for long sustained periods of time - even forever!

And did you know that your real estate production can hit a point of "Critical Mass"?

It's true. In fact, after teaching more than 18,000 agents how to get breakthrough production and lasting profits in real estate…

I Have Never Seen a Real Estate Practice Achieve Long-Term
Success WITHOUT Reaching Critical Mass™…

Yes, it's that important. Let me explain further…

See…about 12 years ago…when I was working with small groups of agents, I coined the term "Critical Mass™" to explain the dynamic of growing such a strong "marketing momentum and personal market share" you actually start to generate 70%, 90%, even 100% of your clients from your created marketing momentum.

But more than that…I discovered a way to make your production continue to grow and grow almost automatically year after year.

Picture your real estate production like a small snowball in your hand. If you take that snowball and start rolling it down a hill, it will start growing bigger. And as it grows bigger it will start to take on its own momentum and start rolling itself.

And as it starts rolling faster, it also starts to get bigger…and bigger…and bigger. And as it gets bigger, it starts to roll faster…and faster…and faster.

Do you see what's happening here?

At some point your snowball reaches a point of "Critical Mass™" where its accumulated momentum will keep it rolling and rolling and rolling.

So what happens when your real estate practice starts reaching Critical Mass™?

Amazing things start to happen…

Your production will multiply, and continue to grow for as long as you practice real estate, because you're creating your own momentum…your own personal market share - it's a mathematical certainty as you'll soon see…

You will never cold prospect again…never face the humiliation and frustration of cold marketing - nearly all of your clients will come to you the easy way: by referral, word of mouth, and repeat business…

You will never face the brutal consequences of a slow market…

You will work half as much and stress a fraction of the amount you do now…and in the process you'll make multiples of your present income.

Why will all these good things happen? Because…

You Will Spend Your Time Only On the Most Productive
Real Estate Activities: Working With Clients,
Closing Deals and Getting Paid!

Imagine if you could wake up each morning, and, instead of dreading your day cold prospecting or wondering where your next client is coming from, you relish in a steady flow of clients who want to work with you and only you.

It's not a pipedream. It's not a fantasy - agents are now doing it all the time.

But there's a small problem.

See, most agents never reach Critical Mass™. They lurch from one bad effort to the next, because they never learn about the concept, or how to get there. So they either quit the business, or give up and sadly assume real estate needs to be a constant struggle.

And many of those who actually reach Critical Mass™ get there by accident…or take 10 to 20 years to reach that point.

Well, I'm here to tell you: You don't have to be a victim of ignorance. You don't have to struggle and strain or take 10 or 20 years to finally "make it" in real estate.

You can "short-cut" your success by 90% or more if you simply apply this strategy into your practice - and build your own personal "Critical Mass™" momentum and market share.

Which brings me to our little formula for building Critical Mass™ in your practice…

It's a simple math calculation for building any size real estate practice you desire…a calculation that will reveal to you the exact size of your "house list"…your personal market share required to reach Critical Mass™ in real estate. It's our…

Critical Mass Targeting System™

Follow along carefully, because this is the most important little calculation of your real estate career. I want you to understand the dynamics here as well as the simple math.

Take out a piece of paper and follow these 3 easy steps…

STEP #1: Write down the number of real estate transactions you want to achieve to reach Critical Mass™ in your real estate practice.

Critical Mass™ is a different number for everyone. For some agents, it may be 15 transactions a year. For others it may be 40. And for others it may be 400.

Another way to calculate the number of transactions you desire is to back into it. Simply take the "net income" you desire, and divide it by the average NET commission you make per transaction (that's after all expenses: broker split, marketing costs, employee expenses, office rent, auto expense, etc.).

For example, if you want to make $200,000 and your average "net" commission (after expenses) is $5,000, then your Critical Mass™ number is 40 transaction sides ($200,000/$5,000 = 40).

As a side note (and food for thought): the higher the average price of homes you sell, the fewer you need to sell to meet your Critical Mass™ income level. But you already knew that, right?

STEP #2: Write down how long the average person in your area owns their home, and multiply that number by #1 above (the # of transactions you need to reach Critical Mass™).

National home ownership average is about 5.5 years. But it's changing in today's market. So to be conservative, let's assume its 7 years in your area (you can use 6 or 8 or 10 for that matter). Check with your local MLS or REALTOR® Association if you're not certain - or just assume for now.

For example, if the average homeownership period in your area is 7 years, multiply 7 times 40 transaction sides (from #1 above). 7 Years x 40 = 280.

THE RESULT: In our example, you will require 280 homeowners on your "house list" to generate 40 transactions EVERY year (your Critical Mass Target™.

Now remember, this doesn't include the referrals they could send you. It's just the number of direct transactions that will statistically come from this group (and you can check your math: 280 people divided by 7 years = 40 deals per year will come from this group).


Those 280 are your goal ONLY if you get ALL of their transactions. Let's be reasonable: you won't get all those transactions.

Regardless of your efforts, some will go FSBO. Some will go to "Uncle Charlie." And some will go to another agent.

That's why we now need to adjust for your "Personal Market Share™" with that group to get your true Critical Mass Target™.

STEP #3: Divide your "house list" number (from #2 above) by the estimated "Personal Market Share™" you have with those folks - to get the "actual" number of people required on your house list.

What do I mean by "market share"?

Market share is the propensity of these people to think of YOU FIRST (and final) for real estate services before any other agent.

How do you figure your market share %?

Over time (a year or so) you'll understand your market share because you'll know how many transactions came from your house list or target farm or whatever list your using.

And remember, marketing to that group over time will have a cumulative effect, and actually increase your market share with them.

But for now, I know our agents using Service For Life!® harvest between 30% and 80% personal market share with their "house list."

So let's work an example…

Continuing with our previous example, let's say you have a 30% market share with your folks. That means you should divide your 280 people by your 30% market share: 280/.30 = 933 people.

So if you have only a 30% market share with your house list or target farm, you'll actually need to have 933 people on your "list," not 280.

But what if…because of your relationship contact systems - like our Service For Life!® subscribers - you actually harvest 50% of those people?

280/.50 = 560 people. You now need only 560 people to harvest your 40 transactions every year (not including referrals they could send you). You just cut your list size almost in half!

And what if, because of your relationship contact systems, you actually harvest 80% of those people?

280/.80 = 350 people. You now need only 350 people to harvest your 40 transactions every year (not including referrals they could send you). You just cut your list size by one-third again!

Do you see the "dynamic" that's happening here?

The SIZE of your list required to reach Critical Mass™ depends on the QUALITY of your list.

And the quality of your list is controlled by YOU!

The higher the quality of your list (i.e. the closer the relationship), the fewer people you need to reach Critical Mass™. The fewer people required means lower marketing costs and higher profits for you.

By the way, I've seen agents create house lists larger than 700 in their very first year following this system - and they closed an extra 20 to 50 transactions just in the process of building that list.

And remember, the "Critical Mass Target™" number does NOT include the referrals you could harvest from these folks - it's just the direct transactions that will come from that group.

Many of our Service For Life!® agents actually add up to 40% more business from the referrals they generate from their house list.

Question: WHO will be the agent representing these people when it's time to buy or sell?

Answer: The agent who's created the closest relationship with them.

The agent who has nurtured the relationship.

The agent they can trust.

The agent who's demonstrated their competence over the years.

The agent who brings regular, welcomed value.

The agent who has differentiated themselves from every other agent out there!

Don't fall prey to the thought that you need to carpet the area with your one-time contact - that's a losing strategy. This is about more; this is about QUALITY RELATIONSHIP.

Now you know why…

…Agents Bob and Lois L. from Orange, CA make $240,000 per year off a house list of just 332 people…

…Agent Kathy Low from San Jose increased her monthly commissions over $17,251.00 within a few months on a house list of 400…

…Broker Cathy McGrail now sells 62 homes a year - every year - in her tiny market of Englewood, Ohio…

And how you can too.

Building your house list is easier than you think - I'm going to give you easy strategies for building it faster and bigger than you ever dreamed possible in Part II of our course (link to download it free shortly).

The only thing that's missing for you is…

How Do You Get Your Personal Market Share™ with
Your House List as HIGH as it can Possibly Get?

How Do You Make Yourself the ONE Agent Your Market
Thinks Of Before Any Other Agent Comes To Mind?

The Answer: You need a consistent contact system that involves them. Gets read and shared. Automatically builds a deep relationship worthy of referrals, word of mouth and repeat business.

A tool that brings your prospects and clients value so they're subconsciously forced to reciprocate and do business with you. A tool that bonds them to you like family.

That's why I developed our Service For Life!® prospecting and referral generating tool just for real estate professionals.

I know it all sounds a bit like "hype." But look at the facts. Look at the logic of it all.

Doesn't it make sense? It's intuitive.

But don't take my word for it. You can examine hundreds and hundreds of success stories from agents just like you (and get access to your Free copy of "The Ultimate Real Estates Success Secret") at…

Go there and scroll to the BOTTOM of the page - there you'll see all kinds of links about how you can quickly multiply your production year after year using a simple "marketing system."

Oh…and if any of my points in this article struck a nerve, why not head over to and enter your name and address into the form on the main page - I'll give you the entire Ultimate Real Estate Success System and send you a fantastic "success kit" by first-class mail…

…and you can now get started building Critical Mass™ for your own business.

How “Serving First” Generates Business for This Agent

My marketing idea is very simple; Serve first. The most business I can currently count on is the business referrals from my neighborhood.

In 2003, I was elected the Homeowner's Association President for my neighborhood which has 564 homes. Since then, I have organized multiple Social activities as well as gathered information about an upcoming opportunity to lease the gas minerals under our 123 acres, that is, Stone Meadow.

I became the voice for the community on such issues as zoning, highway plans and school boundary changes. I organized 22 "Block Captains" to knock on the door of every home on their street and obtain an e-mail address and phone number for that home. Using that information I send a monthly newsletter to educate my homeowners about the home selling market and most recently how to obtain a credit score three times a year for FREE!

I just closed a deal for a family that has a close friend that lives in my neighborhood. I have never met that neighbor face to face, although he receives my newsletter monthly and my periodic e-mails about neighborhood issues. He called and stated that I was his only choice to represent his friend in the purchase of a new home. It was the second largest commission I had ever received!!

Many of the homeowners wonder why I put so much time in this community for free. I just tell them my belief system is "Serve first", and then I say "Oh, by the way, if you happen to hear about someone looking to buy or sell a home, would you mind referring my name, I promise to take great care of them." Jon Wise Stone Meadow HOA President Zoning Commissioner Chairman for the City of Ft Worth, Texas

Quick Tip…

“House in an area not getting any traffic or lookers? Advertise a one day or weekend price reduction good for only 1 or 2 days. Urgency to decide and a lowered price brings contracts. (Ed Note: Advertise a two-day commission incentive for agents as well - just a kicker to get buyer agents' attention. We used to give away a free weekend in Hawaii for agents who sold our spec homes prior to construction completion. It worked!)”

Flip video camera

Could you use this cool Video Camcorder in Your Business?
Share Your Best STUFF!

Real estate can be a tough, lonely business. Even top agents need a continuous flow of guidance, support and new ideas to keep going strong. When you share your best stuff with our community, everyone wins!

AND…remember, each month we hold a drawing to award one amazing FLIP video camcorder to an agent who submits an idea we use. So submit your best prospecting, marketing, horror story, or other real estate idea that makes you more successful, and you'll automatically become eligible to WIN a BRAND NEW FLIP video camcorder. Be sure to include an example if you have one! Click Here

Money Tree Strategy Boosts Exposure to Listings

Need more exposure to your listings…or just want to show your clients you know how to draw agents to a home like ants to a picnic? Try this idea with your "hard to get exposure" listings…

I have used a money tree at my broker previews to get other agents to preview my listings.

I get the seller to put in $25 and each agent who wants to participate to put in $25, then conceal bills $1, $5, $10, $20 and a $50 bill inside place cards (or small envelopes and hang them on the tree with ribbons).

The agents must visit at least 5 of the homes on the tour and get a colored star on the back of their card. At the end of the tour they can have a place card with a hidden bill inside to see what they have won.

I use about 100 1's a few 5's, 10's and 20's and one $50 bill. I sometimes put the money tree in a hard to move listing and the owner and I each put up $100 and offer the tree at brokers preview.

The last one we put up had $200 and we lost about $25 each but had fun and great response. P.S. I bought a crystal tree from a novelty warehouse and so it is not "Christmasy" (and works year round). I have used a silk ficus tree in past years too.

Horror Story: PSYCHO CLIENT!

It always amazes me that seemingly normal people can turn completely irrational during a real estate transaction. An elderly buyer client of mine had very specific requirements on what he wanted and more importantly DIDN'T want while looking for a home.

After much searching we found a home he liked. The offer was made and accepted. Despite my encouragement to do so the buyer absolutely refused to have a home inspection done, and thankfully I had the foresight to have him put in writing that the home inspection was offered but he elected not to have one done.

Escrow proceeded smoothly until a few days before closing when instead of having an out of town bank wire the funds to escrow he hand carried a cashiers check in and raised much ruckus when escrow and local banks informed him that even a cashiers check requires 17 days to clear. We finally got a bank to clear it in 7 days and I thought that the challenges were finally over. The client did the final walk thru of the house and okayed everything.

So where's the horror story you ask? Here it comes!

We proceed to closing. He signs all the papers. Escrow messengers the docs. Typically here recording happens the day after signing as escrow has to deliver originals to the bureau, which is on a different island, and occupancy is given on recordation.

Later that afternoon the buyer calls me wanting the keys. I explained AGAIN that he gets the keys the next day, and he goes ballistic. The next call I get is from escrow saying he was in their office and refusing to leave until they either give him the keys or return his money, which of course they can't do as they don't have keys and have already deposited the funds and sent the docs to the bureau.

I proceed to try and sort it out with the seller's agent and finally get them to agree to let him have the keys so escrow wouldn't have to call the police to have him removed from their office.

I give him the keys and thought all was well. Within 30 minutes I get a call from my client saying he's canceling the deal because when he got to the house the electric had been turned off! I had reminded him 2 weeks before to go to the electric company and have it transferred to his name as of the expected closing date, but he didn't do it. So I go to the house, having made arrangements with the electric company to come out and turn it on that very day, but he's in such a state that he's just ranting and raving, and then proceeds to tell me that someone has been in the house and damaged the cabinets in the kitchen.

We go to look and they are the same as they have always been every time we went to the house, and I explained this to him, at which point he begins yelling at me saying I am the one who went into the house and damaged the cabinets!

Being completely irrational at this point he has somehow managed to come up with this idea that I caused the damage so that I could sell the house again. At that point I told him I was not going to be yelled at and was leaving. I haven't heard from him again.

A few days ago I get a call from my broker saying she got a call from my client about a house he wants to buy in a different area. When she told him he should call me he said not in 1000 years as I am a cheat!

She reminded him that she had also talked to him when he was buying the house so she must be a cheat too in his eyes. She wondered why he would think that, so I told her his idea that I damaged the house so that I could list it.

There was a long pause, then, she said, "Darn I never would have thought of that marketing technique!"

I considered putting this under "Marketing ideas" but decided it probably isn't a good technique to use!

Issue #1135